Stocks that were in focus include names like IREDA, which rose 5%, Infosys, which declined 3%, and Wipro, whose shares fell 2.5% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
IREDA
In the daily timeframe, the counter has recently broken out of a falling wedge pattern formation with high volumes, providing confidence.
Additionally, the RSI is showing positive divergence from lower levels. Technically, the first support lies at 120. If breached, the next major support is placed at 99. On the upside, the first resistance zone will be at 155, where the 50 SMA is positioned. Above this, we can expect targets of 185 and beyond.
Infosys
The counter witnessed a breakdown of head and shoulder pattern formation on the daily chart, then retested its last breakdown levels at 1650 and again started a new leg of rally towards 1500 levels.The overall structure is distorted as it trades below its all-important moving averages but It is trading nearly its important support zone at 1475, where trend line support and the 200-day simple moving average are positioned.
The chances of reversal are very high as the RSI has entered oversold territory and Nifty IT has found support from its 100 SMA. On the upside, the first resistance is placed at 1590. If surpassed and sustained, we can expect levels of 1650 in the short term.
Wipro
In the longer timeframe, it has witnessed a breakout of a long consolidation with strong volume. but from the higher levels it is showing some profit booking from higher levels.
The structure of the counter looks lucrative for long-term investors, as it is trading above all its important moving averages on the weekly chart.
On the long-term view, Rs 560 is the immediate hurdle on the upside; above this, we can expect a move towards Rs 600+. On the downside, Rs 470 will be the support level, while below this, Rs 440 is a strong demand zone during any correction.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)